Michael Costa
Encyclopedia
Michael Costa is a former Australia
n Labor
politician. He was a member of the New South Wales Legislative Council
from 2001 until 2008, and Treasurer of New South Wales from 2006 to 2008.
to Greek Cypriot migrants who came to Australia in the 1950s. In 1979, Costa began work as a rigger at the Garden Island
naval dockyard. It was there where he was first involved with the Australian labour movement
becoming a Delegate for the Federated Ironworkers' Association (now Australian Workers' Union
). During this period he also studied at night at the University of Sydney
.
In 1983, Costa started work as a trainee engineman, but never progressed to a Driver, and became active in the Australian Federated Union of Locomotive Enginees (AFULE). At the time the AFULE had a militant leadership who began a series of strikes over differences with the Australian Railways Union, whereby brake vans were removed from freight trains, and the guards were given locomotive jobs. Preferential treatment of the guards was seen by many as a reward for not striking over the loss of their jobs in brake vans. This led to Costa running against the incumbent leadership of the union in the AFULE's elections which Costa won convincingly. In 1989, Costa was elected as an organiser with the Labor Council of New South Wales
. In 1998, he was elected as Secretary of the Labor Council. He was the first Secretary to be of a non English speaking background.
in the Carr
Labor Government. Costa served as Police Minister from 21 November 2001 until 2 April 2003.
line in April 2004 and the near-closure of part of the Newcastle line
. In 2004, train reliability was further affected by a train driver dispute. This mainly stemmed from a "shortage of fit drivers and an unauthorised overtime ban" by drivers. Journalist Miranda Devine
said that:
NSW Unions said of Costa and the rail executive that:
Costa is credited with the bus reform policies pursued by the Government.
When Treasurer Michael Egan
resigned unexpectedly in January 2005, Premier Carr took the opportunity for a major reshuffle. Costa was subsequently shifted sideways to Roads and the minor portfolios of Ports and Economic Reform and replaced in Transport by John Watkins
. Costa was Roads Minister between 21 January and 3 August 2005.
Following a cabinet reshuffle brought about by the resignation of Premier Carr
in August 2005, Costa became the Minister for Finance and Infrastructure.
, at a time when the state's economy had begun to contract, raising the spectre of a recession.
Costa was the architect of his government's plans to privatise NSW's electricity sector and in the face of union opposition was arguing that the move would create jobs and secure a new power station to meet power demand. After the NSW ALP conference voted down the privatisation plans, Costa threatened to quit if the policy did not pass the NSW Parliament.
In September 2008, with Opposition from the Liberal and National Parties, as well as dissident Labor MP's, the privatisation bill was defeated. Soon afterwards, amid mounting leadership speculation, Morris Iemma
dumped Costa as Treasurer, but then resigned as Premier after losing the support of the dominant right faction, and was replaced by Nathan Rees
. Costa announced that he was quitting politics, and after resigning from his seat was replaced by John Robertson
.
A week after his sacking, Costa said the Government was dominated by "spin merchants" and "machine politicians" unqualified to govern in an essay written for The Daily Telegraph
.
Costa has been described as the "State Government's leading climate change sceptic" mainly because of his views supporting increasing capacity of smelters and power station
s.
In June 2007, during Question Time
in the New South Wales Legislative Council, Costa launched into a tirade against the theory of global warming
and told caucus it should adopt a proposal that would allow big power users such as aluminium smelters to avoid the costs of meeting the Government's renewable energy
targets to "save jobs in Newcastle
and Wollongong". He also said he did not support Flannery being made 2007 Australian of the Year
. Part of Costa's statement is as follows:
. His columns were controversial for their attacks on environmentalists and Kevin Rudd
. For instance, in one column he attacked Rudd's The Global Financial Crisis essay in the left-leaning journal, The Monthly
, arguing that "All the way through his essay Rudd tries to have it both ways, cherrypicking economic history to support his political prejudices".
Another column claimed that "Rudd has a highly developed ability to ignore inconvenient views he has recently held when they conflict with his immediate political requirements". Costa was also critical of Rudd's plan to lift the age pension eligibility threshold to 67, arguing that "it will alone make very little real contribution to the important challenge of dealing with the costs of an ageing population".
Costa was also critical of Malcolm Turnbull
, then leader of the Opposition, writing once that "The Howard government lost many ministers but continued to have electoral success because, whether you liked it or not, you knew what the Howard government stood for. Does anybody know what the Turnbull opposition stands for?" - a comment that earned the praise of Daily Telegraph conservative
columnist, Tim Blair
. In mid-2009, Costa stopped writing regular columns until he returned a year later, after the revelation in Betrayal, a book by Daily Telegraph journalist Simon Benson
, that Rudd had reneged on a promise he made to Iemma to publicly support the electricity privatisation. Costa wrote that:
Costa also predicted that Rudd's character would be an issue at the 2010 Federal election stating that "(Rudd) chose to put his political popularity before the policy position. He chose to take the advice of machine men. These same machine men no doubt are closely watching the opinion polls and planning to politically execute him if his standing in the polls continues to decline". A few weeks later, Rudd resigned as Prime Minister
shortly before a leadership ballot he would have lost.
In December 2010, Costa had a piece named Reform the cure for Labor's ills published in The Australian which contributed to the Labor Party's internal debate after the 2010 federal election, which nearly saw Labor lose government after only one term in office. In that article, Costa argued that Labor's problems were due to the rise of individuals who value winning elections at all costs, and have scant regard for sound policy. Costa also warned that Julia Gillard's embrace of the Greens was a tactical mistake as it had the effect of legitimising the Greens. Costa recommended that Labor reject the Greens by showing the negative economic and social consequences of their policies.
in the Hunter Valley in rural New South Wales with his wife Deborah, a primary school teacher, with their two young children including Valentina. He also has a son and daughter from a previous marriage; an established lawyer and award-winning playwright, respectively. He has revealed that he struggled with bipolar disorder in 2001.
On 14 April 2011, an armed man broke into Costa's home, threatening his wife with a knife before tying her up and fleeing with their car.
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n Labor
Australian Labor Party
The Australian Labor Party is an Australian political party. It has been the governing party of the Commonwealth of Australia since the 2007 federal election. Julia Gillard is the party's federal parliamentary leader and Prime Minister of Australia...
politician. He was a member of the New South Wales Legislative Council
New South Wales Legislative Council
The New South Wales Legislative Council, or upper house, is one of the two chambers of the parliament of New South Wales in Australia. The other is the Legislative Assembly. Both sit at Parliament House in the state capital, Sydney. The Assembly is referred to as the lower house and the Council as...
from 2001 until 2008, and Treasurer of New South Wales from 2006 to 2008.
Early life and career
Costa was born in NewcastleNewcastle, New South Wales
The Newcastle metropolitan area is the second most populated area in the Australian state of New South Wales and includes most of the Newcastle and Lake Macquarie Local Government Areas...
to Greek Cypriot migrants who came to Australia in the 1950s. In 1979, Costa began work as a rigger at the Garden Island
Garden Island
Garden Island may refer to:Australia:* Garden Island, New South Wales* Garden Island, Tasmania* Garden Island , near PerthCanada:* Garden Island , Ontario* Garden Island , Ontario...
naval dockyard. It was there where he was first involved with the Australian labour movement
Australian labour movement
The Australian labour movement has its origins in the early 19th century and includes both trade unions and political activity. At its broadest, the movement can be defined as encompassing the industrial wing, the unions in Australia, and the political wing, the Australian Labor Party and minor...
becoming a Delegate for the Federated Ironworkers' Association (now Australian Workers' Union
Australian Workers' Union
The Australian Workers' Union is one of Australia's largest and oldest trade unions. It traces its origins to unions founded in the pastoral and mining industries in the 1880s, and currently has approximately 135,000 members...
). During this period he also studied at night at the University of Sydney
University of Sydney
The University of Sydney is a public university located in Sydney, New South Wales. The main campus spreads across the suburbs of Camperdown and Darlington on the southwestern outskirts of the Sydney CBD. Founded in 1850, it is the oldest university in Australia and Oceania...
.
In 1983, Costa started work as a trainee engineman, but never progressed to a Driver, and became active in the Australian Federated Union of Locomotive Enginees (AFULE). At the time the AFULE had a militant leadership who began a series of strikes over differences with the Australian Railways Union, whereby brake vans were removed from freight trains, and the guards were given locomotive jobs. Preferential treatment of the guards was seen by many as a reward for not striking over the loss of their jobs in brake vans. This led to Costa running against the incumbent leadership of the union in the AFULE's elections which Costa won convincingly. In 1989, Costa was elected as an organiser with the Labor Council of New South Wales
Labor Council of New South Wales
The Labor Council of New South Wales is a representative body of Trade union organisations in the State of New South Wales, Australia. As of 2005 there are 67 unions and 8 Rural and Regional Trades & Labor Councils affiliated to the Labor Council, representing 800,000 workers in NSW...
. In 1998, he was elected as Secretary of the Labor Council. He was the first Secretary to be of a non English speaking background.
New South Wales Parliamentary career
Costa shifted to a political career in 2001, when he became a member of the Legislative Council at a countback following the resignation of Johno JohnsonJohno Johnson
The Hon John Richard "Johno" Johnson KCSG is a former Australian politician. Born in Murwillumbah, New South Wales, he was a grocer and trade union official before entering politics. He married Pauline Christina Russell, with whom he has two sons and two daughters...
in the Carr
Bob Carr
Robert John "Bob" Carr , Australian statesman, was Premier of New South Wales from 4 April 1995 to 3 August 2005. He holds the record for the longest continuous service as premier of NSW...
Labor Government. Costa served as Police Minister from 21 November 2001 until 2 April 2003.
Transport Services and Roads portfolios
Costa served as Transport Services Minister from 2 April 2003 until 21 January 2005. He was also appointed as Minister for the Hunter, Minister Assisting the Minister for Natural Resources and Minister Assisting the Minister for State Development. The Transport portfolio was controversial during this time, mainly due to rail line closures and the train driver dispute. Costa ordered the closure of the MurwillumbahMurwillumbah, New South Wales
Murwillumbah is a town of approximately 7,500 people in far north-eastern New South Wales, Australia in the Tweed Shire. It lies on the Tweed River, 848 km north-east of Sydney, 13 km south of the Queensland border and 132 km south of Brisbane. At the 2006 census, Murwillumbah had a...
line in April 2004 and the near-closure of part of the Newcastle line
Newcastle railway line, New South Wales
The Newcastle railway line is a branch railway line in the city of Newcastle, New South Wales, Australia. The line branches from the Main North line at Broadmeadow and travels in an easterly direction through the inner suburbs of Newcastle to Newcastle station...
. In 2004, train reliability was further affected by a train driver dispute. This mainly stemmed from a "shortage of fit drivers and an unauthorised overtime ban" by drivers. Journalist Miranda Devine
Miranda Devine
Miranda Devine is an Australian columnist and writer noted for her conservative stance on a range of social and political issues. Her column, formerly printed twice weekly in Fairfax Media newspapers The Sydney Morning Herald and The Sun-Herald, now appears in the News Limited Daily Telegraph with...
said that:
- So Costa has driven safety reform hard. But health and psychometric checks of drivers, random drug and alcohol testing and "data loggerData loggerA data logger is an electronic device that records data over time or in relation to location either with a built in instrument or sensor or via external instruments and sensors. Increasingly, but not entirely, they are based on a digital processor...
s" on trains, which can be used to monitor a driver's speed, have caused disquiet among workers.
NSW Unions said of Costa and the rail executive that:
- There has been a total breakdown in goodwill between RailCorp and its workforce.
Costa is credited with the bus reform policies pursued by the Government.
When Treasurer Michael Egan
Michael Egan (Australian politician)
Michael Rueben Egan , a former union official and former Australian politician, served as Treasurer of New South Wales between 1995 and 2005...
resigned unexpectedly in January 2005, Premier Carr took the opportunity for a major reshuffle. Costa was subsequently shifted sideways to Roads and the minor portfolios of Ports and Economic Reform and replaced in Transport by John Watkins
John Watkins (Australian politician)
John Arthur Watkins is a former Deputy Premier of New South Wales, serving between 2005 until his resignation from Parliament in 2008...
. Costa was Roads Minister between 21 January and 3 August 2005.
Following a cabinet reshuffle brought about by the resignation of Premier Carr
Bob Carr
Robert John "Bob" Carr , Australian statesman, was Premier of New South Wales from 4 April 1995 to 3 August 2005. He holds the record for the longest continuous service as premier of NSW...
in August 2005, Costa became the Minister for Finance and Infrastructure.
NSW Treasurer
Costa was appointed Treasurer on 17 February 2006. This is the most famous part of his political career. His time as Treasurer was marked by his relationship with his Federal counterpart, Peter CostelloPeter Costello
Peter Howard Costello AC is an Australian politician and lawyer who served as the Treasurer in the Australian government from 1996 to 2007. He is the longest-serving Treasurer in Australian history. Costello was a Member of the Australian House of Representatives from 1990 to 2009, representing...
, at a time when the state's economy had begun to contract, raising the spectre of a recession.
Costa was the architect of his government's plans to privatise NSW's electricity sector and in the face of union opposition was arguing that the move would create jobs and secure a new power station to meet power demand. After the NSW ALP conference voted down the privatisation plans, Costa threatened to quit if the policy did not pass the NSW Parliament.
In September 2008, with Opposition from the Liberal and National Parties, as well as dissident Labor MP's, the privatisation bill was defeated. Soon afterwards, amid mounting leadership speculation, Morris Iemma
Morris Iemma
Morris Iemma , is a former Australian politician and 40th Premier of New South Wales, succeeding Bob Carr after he resigned on 3 August 2005. Iemma led the Australian Labor Party to victory in the 2007 election before resigning as Premier on 5 September 2008, and as a Member of Parliament on 19...
dumped Costa as Treasurer, but then resigned as Premier after losing the support of the dominant right faction, and was replaced by Nathan Rees
Nathan Rees
Nathan Rees MP, , an Australian politician, was the 41st Premier of New South Wales and parliamentary leader of the New South Wales division of the Australian Labor Party from September 2008 to December 2009...
. Costa announced that he was quitting politics, and after resigning from his seat was replaced by John Robertson
John Robertson (New South Wales politician)
John Cameron Robertson MP , an Australian politician, is the Leader of the Australian Labor Party in New South Wales and the Leader of the Opposition. Robertson is a member of the New South Wales Legislative Assembly representing Blacktown for Labor since 2011...
.
A week after his sacking, Costa said the Government was dominated by "spin merchants" and "machine politicians" unqualified to govern in an essay written for The Daily Telegraph
The Daily Telegraph (Australia)
The Daily Telegraph is an Australian tabloid newspaper published in Sydney, New South Wales, by Nationwide News, part of News Corporation.The Tele, as it is also known, was founded in 1879. From 1936 to 1972, it was owned by Frank Packer's Australian Consolidated Press. That year it was sold to...
.
Political views
Costa is seen as pro-economic development. The Sydney Morning Herald described him as:
- There's no holding back from Costa when he advocates coalmining, aluminium smelters and the privatisation of the electricity industry. This is an unabashed supporter of economic considerations above all else, for public service reform and for not believing climate-change doomsayers. As he puts it: "I want to see economic prosperity. I make no apology for that."
Costa has been described as the "State Government's leading climate change sceptic" mainly because of his views supporting increasing capacity of smelters and power station
Power station
A power station is an industrial facility for the generation of electric energy....
s.
In June 2007, during Question Time
Question Time
Question time in a parliament occurs when members of the parliament ask questions of government ministers , which they are obliged to answer. It usually occurs daily while parliament is sitting, though it can be cancelled in exceptional circumstances...
in the New South Wales Legislative Council, Costa launched into a tirade against the theory of global warming
Global warming
Global warming refers to the rising average temperature of Earth's atmosphere and oceans and its projected continuation. In the last 100 years, Earth's average surface temperature increased by about with about two thirds of the increase occurring over just the last three decades...
and told caucus it should adopt a proposal that would allow big power users such as aluminium smelters to avoid the costs of meeting the Government's renewable energy
Renewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
targets to "save jobs in Newcastle
Newcastle, New South Wales
The Newcastle metropolitan area is the second most populated area in the Australian state of New South Wales and includes most of the Newcastle and Lake Macquarie Local Government Areas...
and Wollongong". He also said he did not support Flannery being made 2007 Australian of the Year
Australian of the Year
Since 1960 the Australian of the Year Award has been part of the celebrations surrounding Australia Day , during which time the award has grown steadily in significance to become Australia’s pre-eminent award. The Australian of the Year announcement has become a very prominent part of the annual...
. Part of Costa's statement is as follows:
- But the Greens and idiots like Tim Flannery said it will never rain. Well it has started to rain and it seems as though it is going to rain forever. These people do not understand climate cycles. When it comes to the climate they are alarmists and cannot see beyond the end of their noses. They create division, panic and fear so that they can rustle up a few naive people to vote for them at election time. Climates change.
Columnist for The Australian
After quitting politics, Costa became a regular columinist for The AustralianThe Australian
The Australian is a broadsheet newspaper published in Australia from Monday to Saturday each week since 14 July 1964. The editor in chief is Chris Mitchell, the editor is Clive Mathieson and the 'editor-at-large' is Paul Kelly....
. His columns were controversial for their attacks on environmentalists and Kevin Rudd
Kevin Rudd
Kevin Michael Rudd is an Australian politician who was the 26th Prime Minister of Australia from 2007 to 2010. He has been Minister for Foreign Affairs since 2010...
. For instance, in one column he attacked Rudd's The Global Financial Crisis essay in the left-leaning journal, The Monthly
The Monthly
The Monthly is an Australian national magazine of politics, society and the arts, which is published eleven times per year on a monthly basis except the December/January issue. Founded in 2005, it is published by Melbourne property developer Morry Schwartz...
, arguing that "All the way through his essay Rudd tries to have it both ways, cherrypicking economic history to support his political prejudices".
Another column claimed that "Rudd has a highly developed ability to ignore inconvenient views he has recently held when they conflict with his immediate political requirements". Costa was also critical of Rudd's plan to lift the age pension eligibility threshold to 67, arguing that "it will alone make very little real contribution to the important challenge of dealing with the costs of an ageing population".
Costa was also critical of Malcolm Turnbull
Malcolm Turnbull
Malcolm Bligh Turnbull is an Australian politician. He has been a member of the Australian House of Representatives since 2004, and was Leader of the Opposition and parliamentary leader of the Liberal Party from 16 September 2008 to 1 December 2009.Turnbull has represented the Division...
, then leader of the Opposition, writing once that "The Howard government lost many ministers but continued to have electoral success because, whether you liked it or not, you knew what the Howard government stood for. Does anybody know what the Turnbull opposition stands for?" - a comment that earned the praise of Daily Telegraph conservative
Conservatism
Conservatism is a political and social philosophy that promotes the maintenance of traditional institutions and supports, at the most, minimal and gradual change in society. Some conservatives seek to preserve things as they are, emphasizing stability and continuity, while others oppose modernism...
columnist, Tim Blair
Tim Blair
Tim Blair is a conservative journalist, commentator and blogger working in Sydney, Australia.Blair began his journalism cadetship in 1988 at 23, working for the now-closed Truth newspaper in Melbourne. In 2004, the Sydney Morning Herald said that "Blair, 39, is top dog among the new Australian...
. In mid-2009, Costa stopped writing regular columns until he returned a year later, after the revelation in Betrayal, a book by Daily Telegraph journalist Simon Benson
Simon Benson
Simon Benson was a noted businessman and philanthropist from Portland, Oregon.-Background:Simon Benson was born Simon Iversen in Norway, one of seven children in the Berger Iversen family. His eldest brother Jon immigrated to the United States in 1861, followed by his sister Mathea in 1865...
, that Rudd had reneged on a promise he made to Iemma to publicly support the electricity privatisation. Costa wrote that:
- At a personal level these events are a kind of political morality tale. On one side is Iemma, an honourable man who was motivated by a misguided but strongly held belief in labour solidarity and doing the right thing by the ALP. On the other side is Rudd, a person who made a promise and consequently accrued benefits without reciprocating when he was required to do so. It is about the selflessness and selfishness. It is about character.
Costa also predicted that Rudd's character would be an issue at the 2010 Federal election stating that "(Rudd) chose to put his political popularity before the policy position. He chose to take the advice of machine men. These same machine men no doubt are closely watching the opinion polls and planning to politically execute him if his standing in the polls continues to decline". A few weeks later, Rudd resigned as Prime Minister
Prime Minister of Australia
The Prime Minister of the Commonwealth of Australia is the highest minister of the Crown, leader of the Cabinet and Head of Her Majesty's Australian Government, holding office on commission from the Governor-General of Australia. The office of Prime Minister is, in practice, the most powerful...
shortly before a leadership ballot he would have lost.
In December 2010, Costa had a piece named Reform the cure for Labor's ills published in The Australian which contributed to the Labor Party's internal debate after the 2010 federal election, which nearly saw Labor lose government after only one term in office. In that article, Costa argued that Labor's problems were due to the rise of individuals who value winning elections at all costs, and have scant regard for sound policy. Costa also warned that Julia Gillard's embrace of the Greens was a tactical mistake as it had the effect of legitimising the Greens. Costa recommended that Labor reject the Greens by showing the negative economic and social consequences of their policies.
Personal life
Michael Costa currently resides in WollombiWollombi, New South Wales
Wollombi is a small village in the Hunter Region of New South Wales, Australia. It is within the Cessnock City Council LGA, situated southwest of Cessnock and north of Sydney...
in the Hunter Valley in rural New South Wales with his wife Deborah, a primary school teacher, with their two young children including Valentina. He also has a son and daughter from a previous marriage; an established lawyer and award-winning playwright, respectively. He has revealed that he struggled with bipolar disorder in 2001.
On 14 April 2011, an armed man broke into Costa's home, threatening his wife with a knife before tying her up and fleeing with their car.